THOUGHTS

Why Transparency is the Key Ingredient for Brand Loyalty in the Food Industry

May 26, 2018

Today’s consumers are devoting considerable thought and precaution to the food products that they consume. How many times have you read the label of your favorite food product and wondered, “What is really in this?” Due to increased awareness because of digitalization, it has become important for companies in the food industry to be as transparent as possible with the consumers. In fact, transparency is an important building block for consumer trust that eventually results in brand loyalty. Especially in a sector like the food industry, brand loyalty drives sales and growth of a business in the long run. A recent survey revealed that consumers hold food companies the most responsible for showing transparency, more so than farmers, grocery stores, and restaurants. For companies in the food industry, this means that food manufacturing transparency has become an even more critical area of focus to ensure both compliance and customer satisfaction. Here are some advantages that food manufacturers can gain by revealing the true ingredients to the consumers:Request Proposal

Shopper decision making

There is a rising trend among modern consumers to shop according to a specific diet. This indicates that there is a need for a significant portion of consumers to have access to complete product information, rather than only whatever companies in the food industry choose to provide. This allows consumers to make decisions about the foods that meet their unique needs.  Consumer values vary drastically, and the definition of healthy can change from consumer to consumer. By providing accurate and comprehensive product information, brands allow consumers to make decisions that truly meet their personal dietary and health needs. Furthermore, when a consumer is aware that a product contains exactly the ingredients that are best suited to their needs, it promotes brand loyalty in the long run.

Customer loyalty

Due to the consumers’ demand for more in-depth product information, there is an opportunity for companies in the food industry to foster brand loyalty and capture market share. In the CPG industry, companies driving the most revenue are the ones that motivate repeat purchases and foster long-term loyalty. As a matter of fact, most customers will not show brand loyalty to companies that do not provide them with legitimate product information or rather provide them with information that is confusing. This presents a significant opportunity for brands to foster loyalty through product transparency.

Digital engagement

Product transparency goes beyond providing all ingredient information on a physical label. In this era of constant connectivity, there is an opportunity for companies in the food industry to go beyond the product label and offer more information digitally to engage with consumers across multiple channels. Recent research shows that consumers ranked digital labels that display known allergens and all nutritional information highly useful in making shopping of consumer goods easier. There is also an increase in consumers’ interest in mobile apps that offer extended product information. Grocery e-commerce also offers an opportunity for brands and retailers to offer additional product information and foster long-term brand loyalty.


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